EU-Mercosur trade deal to be signed in Paraguay as Lula, von der Leyen hail ‘prosperity’ and multilateralism
Brazilian President Luiz Inacio Lula da Silva and European Commission President Ursula von der Leyen on Friday hailed the European Union–Mercosur trade deal as a pivotal step for prosperity and rules-based cooperation, ahead of a planned signing in Asuncion on Saturday after 25 years of negotiations.
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Meeting in Rio de Janeiro, Lula called the agreement “very good, especially for the democratic world and for multilateralism.” Von der Leyen praised his role in pushing the long-stalled talks to completion, saying the deal “sends a powerful message” about “the power of partnership and openness” and how “we create real prosperity.”
The EU and the Mercosur bloc—Argentina, Brazil, Paraguay and Uruguay—together account for about 30% of global GDP and a market of more than 700 million consumers. The treaty eliminates tariffs on more than 90% of bilateral trade, unlocking new access for European exports such as cars, wine and cheese, and easing entry for South American beef, poultry, sugar, rice, honey and soybeans into Europe.
EU officials agreed the deal in Brussels last week, capping a quarter-century of on-and-off talks. The accord is advancing amid intensifying protectionism and tariff tensions globally, as governments race to secure supply chains and expand market access.
Opposition remains fierce in parts of Europe, where farmers and some environmental groups warn about an influx of cheaper South American products and question production standards. Thousands have protested in recent days in Ireland, France, Poland and Belgium, urging stronger safeguards and enforcement mechanisms.
Von der Leyen will travel to Asuncion for the signing ceremony. Lula will not attend, his office said, noting the event had been planned at ministerial level and that Paraguay issued “last-minute” invitations to presidents. Host President Santiago Peña will attend; Argentina’s President Javier Milei’s participation has not been confirmed.
Lula emphasized that the partnership with the EU extends “beyond the economic dimension,” citing shared commitments to democracy, the rule of law and human rights. He has made the Mercosur agreement a priority of his third term and said Brazil is also advancing talks with Canada, Mexico, Vietnam, Japan and China.
The deal would deepen one of the world’s largest interregional trade relationships and set a new marker for cooperation between Latin America and Europe on growth, climate and standards. Supporters argue it could enhance competitiveness, diversify markets and bolster supply-chain resilience on both sides of the Atlantic.
Von der Leyen said the EU and Brazil are also “moving towards a very important political agreement on critical raw materials” such as lithium, nickel and rare earths—resources she said increasingly risk becoming tools of coercion. Officials in Brussels and Brasília see stronger minerals cooperation as complementary to tariff cuts, binding the economies more tightly in clean-tech manufacturing and energy transition supply chains.
While the agreement still faces political scrutiny and implementation hurdles, Friday’s show of unity in Rio underscored the strategic bet both sides are making: that open markets, clear rules and shared values can deliver growth and geopolitical stability at a moment of economic uncertainty.
By Abdiwahab Ahmed
Axadle Times international–Monitoring.
